Conning Acquires Majority Stake in Pearlmark

March 30, 2023

The deal is intended to broaden Conning’s capabilities while deepening Pearlmark’s resources.

Stephen Quazzo, Co-Founder & CEO, Pearlmark Real Estate. Image courtesy of Pearlmark Real Estate

Global investment management firm Conning, of Hartford, Conn., has completed its acquisition of a majority ownership stake in Chicago-based Pearlmark Real Estate LLC, an investment manager specializing in commercial real estate debt and equity strategies, Conning announced Wednesday.

First announced last November, the transaction is intended to add real estate expertise to Conning’s investment capabilities, while providing Pearlmark with support to strengthen and grow its platform. Conning highlighted the expanded range of investment options that the deal makes available to insurers and other institutional investors.

Doug Lyons, Managing Principal, Pearlmark Real Estate. Image courtesy of Pearlmark Real Estate

Financials on the deal were not disclosed.

Pearlmark reportedly will continue to operate autonomously, with its investment team led by CEO and co-founder Stephen Quazzo and Managing Principal Doug Lyons.

Morgan, Lewis & Bockius LLP was Conning’s legal advisor. CenterCap Group LLC was Pearlmark’s financial advisor and Drane & Freyer Ltd. its legal advisor.

Widely active CRE investor

Pearlmark targets core, value-add and opportunistic real estate opportunities through commingled funds, separate accounts and joint venture structures across various property types (office, industrial and multifamily) nationwide. Since 1996, the company has completed 565 real estate equity and debt transactions on behalf of investors, representing $5.3 billion in equity capital commitments and over $13.8 billion in gross investment value.

Last March, a joint venture of Pearlmark, Hines and a undisclosed limited partnership secured a $135.7 million loan to refinance 1125 17th St., in downtown Denver. The five-year, floating-rate loan on the 494,689-square-foot office building was provided by Deutsche Bank and arranged by JLL Capital Markets.